In trading on Friday, shares of the SPDR Nuveen Bloomberg High Yield Municipal Bond ETF (Symbol: HYMB) entered into oversold territory, changing hands as low as $56.95 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of SPDR Nuveen Bloomberg High Yield Municipal Bond, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 41.6. A bullish investor could look at HYMB's 27.5 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), HYMB's low point in its 52 week range is $56.95 per share, with $61.18 as the 52 week high point — that compares with a last trade of $56.95. SPDR Nuveen Bloomberg High Yield Municipal Bond shares are currently trading off about 0.4% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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